Luxemburgo signs new deal with Gremio

Former Real Madrid and Brazil coach Vanderlei Luxemburgo has ended speculation about his future by extending his contract with Brazilian top-flight outfit Gremio for two more seasons.

The 60-year-old was linked with a return to his former club Palmeiras but came to new financial terms with the Porto Alegre club Friday, reports Xinhua.

"Gremio is ready to win big titles and I want to be a part of the success," Luxemburgo said during a press conference announcing his contract renewal.

Luxemburgo, who joined the club in February, has lifted Gremio from 12th last year to second in Brazil's Serie A championship this season with two matches remaining.

Club officials are understood to have promised the coach financial support in his bid to strengthen his squad ahead of next year's Copa Libertadores.

"We have to start preparing for next season and discuss names," Luxemburgo said. "That includes deciding who will go and who will stay. It will all be done with a great deal of consideration and planning."

Luxemburgo coached Brazil from 1998 to 2000 and also led Real Madrid in 2005.